Personal loan news and advice

All the latest personal loan news and top tips to help you manage your personal loan.

Personal loan question: Is secured or unsecured right for me?

Personal loan question: Is secured or unsecured right for me?

If you’re on the hunt for a personal loan, one question that may be on your lips is, should I choose a secured or unsecured loan? Ultimately, the type of loan you choose could influence things like the interest rate you receive, what you can borrow for and what fees are attached to the loan. So which personal loan is right for you? Let’s break it down: If you have some assets, like a car or a home, you may qualify for a secured personal loan. An example of a typical type of secured loan is a car loan, used to purchase either a new or pre-loved car. Because you are putting up your goods as collateral, these types of loans often come with lower interest rates and fees. According to the Mozo database, the current secured variable rate averages sit at 9.04% (not including car-specific loans) and 7.62% (including car-specific loans). However, it’s important to bear in mind that providers of secured loans are able to seize your assets if you default on your loan.On the flip side, if you don’t have assets to secure against your loan, or you don’t want to put up your car or home as collateral, you could opt for an unsecured personal loan. You might use this type of loan to fund something like a home renovation or to cover an outstanding medical bill. While borrowers aren’t required to risk their assets against the loan, unsecured loans often have higher fees and interest rates attached to them. For example, at the moment the average variable unsecured personal loan rate on the Mozo database is 10.75%. What secured and unsecured personal loans are on the market at the moment? Check out these competitive options below.

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Alex arrives with a competitive personal loan

Alex arrives with a competitive personal loan

Say hey to Alex. The newest Aussie digital lender in the personal loan game. Unlike other aspiring neobanks who kicked off with transaction and savings accounts, Alex switched things up and introduced its inaugural product: the Alex Personal Loan. Currently on the Mozo database, the average unsecured fixed personal loan rate sits at 10.46%. However, the Alex Personal Loan comes with fixed rates starting as low as 6.95% (7.37% comparison rate*). “We're operating in that prime lending space so we really are here for borrowers who really want to be responsible with money,” founder and chief financial officer of Alex, Craig Fenwick said. “We offer loans from $2,100 all the way up to $30,000 and potentially larger amounts in time as well, at terms that are based on the customer's requirements. So we try to personalise loans by offering simpler and fairer credit.” If you want to learn more about this killer personal loan product, take a peek below!

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